Whirlpool and Lowe's Every Week,Whirlpool and Lowe's Have an On-Line Conference Call to Conference

question 106

Multiple Choice

Whirlpool and Lowe's
Every week,Whirlpool and Lowe's have an on-line conference call to discuss what appliances are selling in the stores,and what capacity Whirlpool has to make product.Often,the discussion revolves around a particular model that is selling at a higher than expected rate in Lowe's.This often results in Whirlpool quickly flexing its supply chain to make more of the high-selling product and delivering it to Lowe's customers.However,sometimes the answer is that Whirlpool and/or its suppliers do not have the capacity to make more of the product in question.It then becomes a question of demand shaping for Lowe's.What promotions,in-store displays,sales incentives,etc.can Lowe's implement to shift demand from the capacity-constrained model to one that the supply chain has more capacity to deliver? In this way,Lowe's,Whirlpool,and their suppliers manage supply and also demand.
-Refer to Whirlpool and Lowe's.Which business process are Whirlpool and Lowe's using when they work together to align supply and demand throughout the supply chain?

• A) dependent materials-handling
• B) outsourcing
• C) warehousing
• D) demand management
• E) channel rotation

---

Definitions:

Demand Determined

A characteristic of markets where the quantity of goods or services sold is primarily influenced by consumer demand.

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to price changes.

Demand Determined

A market characteristic where the quantity of products or services provided is primarily set by the level of demand.

Fixed Supply

A situation where the quantity of a specific good available in the market cannot be altered in the short term.